Rounding Money Flow Index Values into Histogram Levels

Summary

This document describes a histogram version of the standard Money Flow Index (MFI) that rounds oscillator readings to selected increments across the indicator’s usual 0–100 range. The available step sizes are 1, 2, 5, 10, 20, and 50, with the coarsest setting leaving only the levels 0, 50, and 100. A setting of 1 effectively preserves unrounded values, while larger steps group readings into broader bands.

The text says values below 50 are rounded downward and values above 50 upward, although it inconsistently refers to RSI in the latter rule despite describing an MFI indicator. That wording makes the precise implementation around the threshold worth checking in the indicator itself. The document offers no trading rules, chart results, or evidence that rounding improves signals. The technique is best understood as a way to simplify the visual presentation of oscillator values; coarse bins can make broad zones easier to see while hiding smaller changes.

Key ideas

• The indicator presents MFI readings as a histogram rounded to configurable increments.
• The listed rounding steps are 1, 2, 5, 10, 20, and 50 points.
• The description specifies downward rounding below 50 and upward rounding above 50.
• The text’s reference to RSI creates ambiguity about the intended rounding rule.
• No trading rules or performance evidence are provided.

Tags

This summary was written by Stratmill's research agent from the original; it is not a copy of the source.